The Sydney property market has been on an upward trend for a number of years and has been rising despite the pressures of a turbulent international economy. Sydney property investment is in high demand from both local and international investors due to its safe nature. While there have been big downturns in the UK and USA property markets, Australia’s seem to be chugging along quite nicely and defying the odds.
So what is it that has made Sydney such a special place to invest in property? Apart from the beauty of the city, it is also Australia’s most populous place and the first choice for the thousands of migrants coming to Australia.
The High Demand in the Sydney Property Market
With so many people choosing to call the Sydney basin home, investment in the area is high, but construction of new projects is still low. This has led to higher prices and greater pressures on the rental market, meaning a big win for investors. An investment property in Sydney may offer good returns, but you do need a good sum of money to enter the market.
So before rushing in to buy in Sydney, you need to do a lot of research and possibly find good advice from a buyer’s agent if you are from another area. This is due to the diversity of properties available around Sydney suburbs. When people talk about Sydney property, they are essentially talking about many different areas that have varying prices, and that there are positive aspects and negative repercussions to consider.
High Rental Demand
The high rental demand in Sydney is great if you already own property, but it does mean that existing properties can be priced quite high. If you do have the cash to buy, then most areas of the city do offer very high occupancy rates compared to other cities.
This demand is not confined to a particular section of the community, either, with good housing demand from:
- High-income earners
- Low-income earners
- Middle-class families
Because many areas of the city are now considered unaffordable for owner-occupiers, people that would otherwise buy a home are now renting.
High Rental Prices
The high rental prices in Sydney can seem great to the unwary investor, but be careful to consider it a factor in the buying price. So while you may get high rents, you will also have to pay more to obtain an investment property. This being said, the high rental price with the high rental demand does make it an attractive opportunity.
Friendly for International Investors
The city is also a popular destination for international money seeking a safe haven in Australian property. With so many other markets falling over, the Australian property market has remained strong thanks to these international investors. The great thing about buying in Sydney from overseas is the number of services available to cater to your language, or just the fact that you cannot see the properties first-hand.
While Sydney may not be for everyone, it does offer a safe investment opportunity for investors with the right amount of money to spend.